[Jellby]

[QUOTE=dezignlady;15703261. Could I do each chapter in a two column table with the left hand column being narrow, an inch or less. I would have to make each paragraph a row, but a table does translate correctly in the ePub format, doesn't it?[/quote]

Tables are fine in ePub, but most readers will do funny things with them, they are particularly problematic in relation to pagebreaks. I don't think a table is the solution here

2. Could each note be an anchored frame that breaks the beginning of each paragraph and hangs, so much like a first word Drop Cap that is hanging. So here the left margin would be wider but not as much as option 1. I see this as the same as inserting a small image and wrapping text around it, so assume it would work as well.

This could work, and you can place the notes mid-paragraph too. You just have to put them in a box with an explicit width and "float: right". You can't use a <div>, though, because those are forbidden inside paragraphs (<p>). Try something like this:

<p>The three characteristics just mentioned fix the aims and
methods of instruction and discipline. <span class="sidenote">The main
objective of traditional education is to prepare the young for future
responsibilities.</span>The main purpose or objective is to prepare the
young for future responsibilities and for success in life, by means of
acquisition of the organized bodies of information and prepared forms of
skill which comprehend the material of instruction.</p>

with:

span.sidenote {
  display: block;
  float: right;
  width: 40%;
  margin: 0.5em 0 0.5em 0.5em;
  font-size: 85%;
  border: solid thin black;
}